REA Group completes acquisition of iProperty Group
REA Group Limited, a multinational digital media business specialising in property, has successfully completed the acquisition of Asia’s owner and operator of property websites, the iProperty Group.
The acquisition is set to position REA Group as the clear market leader in the online real estate industry across the Asia Pacific region.
Prior to the acquisition, in 2014, the REA Group acquired a 17.22 per cent stake in iProperty Group and in July 2015, increased its stake to 22.7 per cent. In November 2015, the company purchased the remaining shares at USD 4 per share, equivalent to AUD 578 million. The deal valued the iProperty Group at about AUd 750.8 million (USD 532.6 million or SGD 749.6 million).
Speaking at a media launch to celebrate the acquisition, Arthur Charlaftis, Chief Operating Officer, International and Developer, REA Group Limited said, “This move is a game changer for our industry. The iProperty Group’s local market expertise is second to none and our teams will be working closely together to tap into the needs of buyers throughout the region and deliver even more value to our customers and consumers.”
He added that with a population of more than 500 million people, South East Asia is the world’s fastest-growing real estate market. Average property prices in Singapore and Hong Kong are already higher than in Australia, and the volume of transactions also exceeds that of Australia, with more than a million property transactions per year in South East Asia.
“The total advertising spend is at a similar level to Australia however in the key South East Asian real estate markets, online only accounts for between 2-12 per cent of the total advertising spend. We know that consumers in South East Asia are online and connected. We would therefore expect that the advertising spend will migrate rapidly towards online channels to mirror consumer media consumption,” Mr Charlaftis added.
“These factors have driven our interest in the South East Asian market, and in particular, in iProperty Group, which has a demonstrated understanding of the market, the customers and what it takes to continue to grow and succeed in this industry,” said Mr Charlaftis.
The iProperty Group, which operates in six countries with clear leadership in Hong Kong, Indonesia, Thailand and Malaysia and with leading portals in Singapore and Philippines, has established an excellent reputation in the industry.
“The iProperty Group constantly exceeds expectations via the delivery of superior innovative products and services that meet market demands. The iProperty Group provides us with exposure to new geographies where we can apply our experience and know-how from existing markets. This acquisition also further demonstrates our commitment to international expansion and is the next step in our growth strategy. We are very excited to welcome the iProperty Group to the REA family,” said Mr Charlaftis.
Georg Chmiel, Chief Executive Officer of the iProperty Group said, “We have strong synergies with REA Group and this acquisition is a major accelerator as this significantly enhances the growth profile for both companies, while giving our customers, property buyers and investors the opportunity to tap into a wider market.”
Mr Charlaftis added that through this, REA Group has created an industry powerhouse.
“This acquisition positions the REA Group as a top-tier global provider in the online real estate industry. With highly skilled people in both businesses, we will be able to tap into greater resources to deliver superior results for customers and immersive experiences for consumers,” shared Mr Charlaftis.
Mr Chmiel also added that the acquisition is a historic leap forward for the iProperty Group.
“The iProperty Group will still be known as the iProperty Group and will continue operations and business as normal. We are now just part of a bigger family and today it is an important milestone that propels us into a future rich with opportunity for our customers, our people, and our company,” concluded Mr Chmiel.
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